EDPR invests $284 million to double its operational renewables capacity in Vietnam; acquires 255 MW solar projects
- Jun 28, 2022 6:01 am GMT
EDP Renovaveis (EDPR) will acquire two solar plants from local developer Xuan Thien Group for a total consideration of $284 million. The projects are located in the Thuan Bac district and have been supplying power since 2020 under a 20-year power purchase agreement (PPA) at a rate of $93.5/MWh. Hyperion Investment Advisory acted as the financial advisor to Xuan Thien Group as part of the transaction.
Through the deal, EDPR is establishing a long-term relationship with the Xuan Thien Group to jointly explore additional opportunities in the APAC region, further strengthening the company’s position in a key growth market. EDPR entered APAC in 2021 through the acquisition of Sunseap, a distributed solar developer solar developer with a 10 GW pipeline of projects spanning Singapore, Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Japan and Taiwan. The company plans to establish a headquarters for the Asia-Pacific region through Sunseap and announced plans to invest up to $7.4 billion by 2030 to establish a clean energy hub in Singapore for the APAC region.
After aggressive expansion of its renewables sector in the past few years, Vietnam is now a leader in Southeast Asia in terms of installed renewable energy capacity with a 100-fold increase in solar capacity in just two years. From 2018 to 2020, Vietnam’s solar photovoltaic capacity increased from 86 MW to about 16.5 GW, giving it the largest installed solar energy capacity of any of the 10 member countries of the Association of Southeast Asian Nations. Due to the lack of constraints on the capital ownership percentages of power generating assets, the Vietnamese renewable energy sector has become an attractive market for international investors in recent years. Furthermore, strong economic expansion is expected to result in a large increase in the country's energy demand. The country authorised new solar energy incentives in 2021, including improved feed-in-tariffs (FiTs) and the ability for rooftop solar providers to sell power directly to commercial consumers.
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